Is it reasonable for an employee, slated to lose his or her employment as a result of the sale of part of his or her company, to refuse an offer of new employment with the purchaser of the business?
In Dussault v. Imperial Oil Limited, 2019 ONCA 448, the Court of Appeal for Ontario confirmed that it is reasonable if the new position fails to be comparable in status, hours and remuneration.
Does resigning from your job interrupt continuous service for statutory notice purposes – even if you never actually leave? “Yes” says Ontario’s top court in the case of Theberge-Lindsay v. 3395022 Canada Inc. (Kutcher Dentistry Professional Corporation), 2019 ONCA 469
Is being 62 years young, 37 years tenured, a Senior Vice President, terminated without cause, and left without any comparable employment opportunities “exceptional circumstances” warranting an award of pay in lieu of notice greater than 24 months? According to the Court of Appeal for Ontario (Pepall, Trotter and Harvison Young JJ.A.) in its decision in Dawe v. The Equitable Life Insurance Company of Canada, 2019 ONCA 512 (CanLII), the answer is "no".
What is the appropriate notice period for a 62 year-old, 37 years tenured Senior Vice President, who is terminated without cause and left without any comparable employment opportunities?
According to the decision of the Honourable Mr. Justice D.J. Gordon of the Ontario Superior Court of Justice in Dawe v. Equitable Life Insurance Company, 2018 ONSC 3130, a minimum of 36 months.
Is an employee who is slated to lose his or her employment as a result of the sale of part of his or her company required to accept an offer of employment from the purchaser, if that offer of employment is on substantially less favourable terms?
If the employee reasonably rejects that offer, then what is the maximum amount of ‘severance’ to which a wrongfully dismissed employee can be entitled? While many will tell you that 24 months is the most a court will ever award for reasonable notice, as this blog has noted on more than one occasion, see e.g. What is the Maximum Amount of Reasonable Notice Under Ontario Law? and Is Twenty-Six the new Twenty-Four? Taking the 'Cap' off the Limit on Reasonable Notice, and as the Honourable Justice Lois Roberts (now of the Court of Appeal for Ontario) said in the case of Hussain v. Suzuki (2011), 209 A.C.W.S. (3d) 101 (ON SC):
There is no cap on the amount of reasonable notice of employment termination to which an employee may be entitled.
On February 20, 2018, the Ontario Superior Court of Justice in its decision in Dussault v. Imperial Oil Limited, 2018 ONSC 1168, once again confirmed that there is no such thing as a “hard cap” at 24 months and took a good, hard look at the obligations of an employee to mitigate his or her damages by accepting a substantially less lucrative offer of employment from the purchaser in an asset sale arrangement.
Notwithstanding the popularity of the Netflix series by the same name, it remains debatable whether orange really is the new black. Also subject to debate is whether twenty-four months remains the unofficial ‘cap’ on reasonable notice.
Ever since the Court of Appeal for Ontario’s pronouncement in Lowndes v. Summit Ford Sales Ltd., 2006 CanLII 14 (ON CA) that, “Although it is true that reasonable notice of employment termination must be determined on a case-specific basis and there is no absolute upper limit or ‘cap’ on what constitutes reasonable notice, generally only exceptional circumstances will support a base notice period in excess of 24 months”, employment lawyers have debated what those “exceptional circumstances” might be.
A more recent decision from the Court of Appeal, Keenan v. Canac Kitchens Ltd., 2016 ONCA 79 affirmed an award of 26 months to a “dependant contractor.” (For more on the issue of “dependant contractors” see The Not-So-Independent Contractor.)
Is 26 the new 24? I don’t know, what I do know is that whoever said orange was the new pink was seriously disturbed.
What is the maximum amount of reasonable notice, also referred to as severance, to which an employee dismissed in Ontario can be entitled under Ontario employment law? As at least one observer has asked, is the sky now the limit? See: Reasonable notice: The sky’s the limit?
The question was asked following the 2012 decision of the Ontario Superior Court in Abrahim et al v. Sliwin et al, 2012 ONSC 6295 (CanLII), in which the Honourable Justice Douglas Gray held, on an undefended default motion that, “I fail to see how a cap of 24 months, or indeed any maximum, is appropriate.”
It is Justice Gray’s decision that perhaps no maximum is appropriate that has led some to question that perhaps the sky is indeed now the limit.
